Chinese Company Experiences Mining Device Demand Explosion in This Altcoin After Trump Wins the Election, Can't Keep Up!

The rising price of Dogecoin (DOGE) after the November 2024 US elections created unexpected pressure on the China-based altcoin mining equipment provider Intchains Group. The company found itself struggling to meet the demand for Dogecoin mining equipment after underestimating the size of the demand.

Intchains reported its full-year earnings on Thursday and announced $8.3 million in GAAP non-GAAP adjusted net income on $38.6 million in revenue, reflecting a significant increase of 242.7% over the previous year. The company recorded an 84% increase from the previous year by selling 2,681,500 units of ASIC chips in 2024. In particular, 1,705,408 units were sold in the fourth quarter of 2024 alone, marking a significant jump from the 423,040 units sold in the same quarter of the previous year.

Intchains CEO and Chairman of the Board Qiang Ding said, "The cryptocurrency market showed strong performance in the fourth quarter of 2024, increasing optimism about the 2025 expectations of major financial institutions," and added: "Dogecoin, maintaining this momentum, saw a solid price increase throughout the quarter. The company, a leading supplier of Dogecoin mining machines, also achieved satisfactory operational results in the fourth quarter of 2024."

Following Donald Trump's election victory and the appointment of Elon Musk to the newly established State Efficiency Department, demand for Dogecoin mining machines rapidly increased. This surge caught Intchains off guard, leading to an accumulation of unfulfilled orders spanning the first quarter of 2025.

The price of Dogecoin reached a peak just above $0.47 on November 12th, following Trump's announcement of Musk's new role. The cryptocurrency's market value then surpassed $60 billion. However, it significantly lost value with the overall cryptocurrency decline.